Corporate governance a vital factor - Dr. Harsha Cabral

Gayan KANCHANA

The corporate community has yet to realize the learning and opportunities with regard to working capital management, capital structuring, corporate governance, risk management and due diligence skills.

This was made known at the Corporate Finance Forum which was launched by MTI Consulting on Wednesday.

Corporate leaders including Director, Union Bank, Anil Amarasuriya, Country Head Fitch Ratings, Chanaka Wickramasuriya and Finance Director, Unilever Shrihan Perera were also present. President's Counsel Dr. Harsha Cabral said, "In the contemporary business world corporate governance is a vital factor. Corporate governance is the set of processes, customs, policies, laws and institutions which affects the way a company is directed, administered or controlled.

Corporate governance also includes the relationship among the stakeholders involved and the goals for which the company is governed.

The principal stakeholders are the shareholders/members, management and the board of directors. It also includes other stakeholders, employees, customers, creditors (e.g., banks, bond holders), suppliers, regulators, and the community at large.

Maintain a good relationship with all the parties and the effective management hierarchy such as appointing the correct person to the correct position will lead to smooth corporate governance of a company," he said.

Director, Frontier Research Amal Sanderatne spoke on 'Capital Structuring' said, thecapital structure refers to the way a Corporation finances its assets through some combination of equity, debt or securities. A firm's capital structure is the composition or 'structure' of its liabilities.